The Aussie dollar got crushed overnight

Getty/ Jeff J Mitchell

The Aussie dollar has fallen a full cent from where it was this time Monday morning and, at 0.7637, is now down 3 cents from the highs of last week when the US dollar was under pressure.

That’s a huge move in the world of forex traders where exchange rates usually move in tenths of a percentage point not the 1.46% the Aussie has lost in the past 24 hours.

What’s driving the Aussie dollar lower are three things at the moment.

  1. Iron ore is lower again with June 62% Fe Cfr China Futures hitting a new low for this selloff last night at $51.46. Annette Beacher from TD Securities wrote yesterday afternoon that the last time iron ore was this low the Aussie was at 64 cents. Traders are taking notice.
  2. The US dollar is on the ascendancy again as strength in the Euro, Yen and others is being reversed once more.
  3. There was talk in forex markets yesterday that the RBA will be forced to cut at next week’s Board meeting

The multi-year low for the Aussie recently was 0.7557. Traders might just be eyeing a pre-Easter test of support.

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